Mutual Fund News of 24th July 2018 – Reliance Mutual Fund

24 Jul 2018

Markets for You

Global Indices

Global Indices 23-Jul Prev_Day Abs. Change

% Change

Dow Jones 25,044 25,058 -14 -0.06

Nasdaq 7,842 7,820 22 0.28

FTSE 7,656 7,679 -23 -0.30

Nikkei 22,397 22,698 -301 -1.33

Hang Seng 28,256 28,224 32 0.11

Indian Indices 23-Jul Prev_Day Abs. Change

% Change

S&P BSE Sensex 36,719 36,496 222 0.61

Nifty 50 11,085 11,010 75 0.68

Nifty 100 11,307 11,216 91 0.81

Nifty Bank 27,008 26,873 135 0.50

SGX Nifty 11,114 11,026 88 0.79

S&P BSE Power 1,920 1,892 28 1.48

S&P BSE Small Cap 15,867 15,721 146 0.93

S&P BSE HC 13,760 13,661 98 0.72

Date P/E Div. Yield P/E Div. Yield

23-Jul 23.08 1.20 27.54 1.21

Month Ago 23.04 1.24 26.63 1.22

Year Ago 23.50 1.22 25.32 1.01

Nifty 50 Top 3 Gainers

Company 23-Jul Prev_Day

% Change

United Phos 632 550 15.01

Vedanta 212 202 4.55

Bharti Airtel 359 345 3.92

Nifty 50 Top 3 Losers Domestic News

Company 23-Jul Prev_Day

% Change

Hero Moto 3165 3377 -6.26

Bajaj Auto 2684 2840 -5.47

Wipro 276 283 -2.31

Advance Decline Ratio

BSE NSE

Advances 1511 1093

Declines 1089 681

Unchanged 176 93

Institutional Flows (Equity)

Description (Cr)

YTD

FII Flows* -6568

MF Flows** 72228

*23

Jul 2018; **16

Jul 2018

Economic Indicator

YoY(%) Current Year Ago

CPI

5.00%

(Jun-18)

1.46%

(Jun-17)

IIP

3.20%

(May-18)

2.90%

(May-17)

GDP

7.70%

(Mar-18)

6.10%

(Mar-17)

24 July 2018

Since May-17, MOSPI has revised base year of IIP & WPI from 2004-05 to 2011-12, and for CPI

from 2010 to 2012

Indian Equity Market

Indices Performance

P/E Dividend Yield

Sensex

Nifty

6.90%

(Feb-18)

7.00%

(Dec-17)

Quarter Ago

Inflow/Outflow

-29

335

4.28%

(Mar-18)

• Indian Equity markets closed in the green following gains in FMCG stocks

post rate cuts by Goods and Service Tax (GST) council. According to the

media reports, the GST council has cut the rates for 88 items with effect

from Jul 27, 2018. Gains were extended after the ruling party won the no-

confidence motion in the Lok Sabha on Jul 20, 2018. However, weak

global cues on intensifying trade war concerns restricted the gains.

• Key benchmark indices S&P BSE Sensex and Nifty 50 grew 0.61% and

0.68% to close at 36,718.60 and 11,084.75, respectively. S&P BSE Mid-Cap

and S&P BSE Small Cap grew 1.29% and 0.93%.

• The overall market breadth on BSE was strong with 1,511 scrips

advancing and 1,089 scrips declining. A total of 176 scrips remained

unchanged.

• On the BSE sectoral front, S&P BSE Telecom stood as the major gainer,

up 2.47% followed by S&P BSE FMCG that grew 2.29%. S&P BSE Basic

Materials and S&P BSE Realty grew 2.16% and 1.90%. S&P BSE Metal and

S&P BSE Power grew 1.62% and 1.48%. S&P BSE Energy stood as the only

loser, down 0.38%.

• The Goods and Services Tax (GST) council met on July 21, 2018, and

reduced tax on various items to boost consumption. Tax on ethanol for oil

marketing companies reduced from 18% to 5%, consumer electronics

from 28% to 18%, 5% ceiling on footwear increased from Rs. 500 to Rs.

1000, all leather items cut from 28% to 18%, among others. The council

has simplified returns and approved quarterly returns for enterprises that

have turnover less than Rs. 5 crore. Tax payments, however, will continue

on a monthly basis.

• According to media reports, the GST council’s decision to cut tax rates

on various items will hit the government’s revenues by Rs. 150 billion

each year. This could also lead to the government missing its budget

targets.

• According to the market regulator, Securities Exchange Board of India

(SEBI), investments in domestic capital market through participatory notes

(P-notes) have significantly fell to more than nine-year low of Rs. 83,688

crore in Jun 2018 from Rs 93,497 crore in the end of May 2018. The

drastic reduction was due to stringent norms taken by SEBI to restrict

black money.

• As per media reports, the commerce ministry is forming a strategy to

strengthen the shipment of chemicals, plastics and allied products sector

thereby pushing the growth of the country’s overall exports. The ministry

has formed a sub-group which will focus on the issues faced by the sector.

• According to media reports, Global retail major Walmart will make use

of blockchain technology in procurement of farm and agricultural produce

in Uttar Pradesh. This would help in the validation of transactions and

efficient delivery management.

• According to media reports, Federal Bank has got regulatory approval to

open offices in Bahrain, Kuwait and Singapore. However, Federal Bank is

awaiting local clearances before it commences operations.

• According to media reports, revenue of L&T Technology Services in the

quarter ended Jun 2018 grew 9% on a quarterly basis to Rs. 1,152.2 crore.

Markets for You

• Asian markets mostly traded in the red after the U.S. President hinted at

imposing tariffs on all Chinese goods and further stated that the European

Union (EU) and China are controlling their currencies to get more benefit

from global trade. Additionally, the G20 finance ministers warned of

increased risks to global economic growth. Bank of Japan is also expected

to change to its ultra-loose monetary policy.Today (as of Jul 24), Asian

markets opened higher following gains in the U.S. technology shares. Both

Nikkei and Hang Seng were trading up 0.36% and 0.51%, respectively (as

at 8.a.m. IST).

• As per the last close, European markets closed lower as trade concerns

between the U.S. and China continued to weigh on the market. Weak

quarterly earnings from some major companies also added to the losses.

• As per the last close, U.S markets closed almost following rise in

technology stocks as investors awaited quarterly results of some major

companies from the sector. However, unexpected drop in existing home

sales in Jun 2018 capped the gains.

FII Derivative Trade Statistics 23-Jul

(Rs Cr) Buy

Sell Open Int.

Index Futures 2110.62 3096.11 27514.72

Index Options 45250.38 45532.14 75856.08

Stock Futures 14875.28 14281.02 79759.03

Stock Options 10894.43 11221.69 8385.27

Total 73130.71 74130.96 191515.10

23-Jul Prev_Day

Change

Put Call Ratio (OI) 1.80 1.71 0.09

Indian Debt Market

Put Call Ratio(Vol) 1.10 0.95 0.15

23-Jul Wk. Ago Mth. Ago

Year Ago

Call Rate 6.23% 6.18% 6.25% 6.10%

CBLO 6.33% 6.23% 5.39% 5.62%

Repo 6.25% 6.25% 6.25% 6.25%

Reverse Repo 6.00% 6.00% 6.00% 6.00%

91 Day T-Bill 6.60% 6.53% 6.45% 6.12%

364 Day T-Bill 7.21% 7.19% 7.05% 6.22%

10 Year Gilt 7.81% 7.80% 7.82% 6.44%

G-Sec Vol. (Rs.Cr) 23443 29694 29154 87997

Currency Market Update

FBIL MIBOR 6.31% 6.30% 6.31% 6.21%

3 Month CP Rate 7.75% 7.50% 7.58% 6.58%

5 Year Corp Bond 8.76% 8.76% 8.71% 7.39%

1 Month CD Rate 6.63% 6.54% 6.93% 6.21%

3 Month CD Rate 6.99% 7.01% 6.93% 6.25%

1 Year CD Rate 7.95% 7.98% 8.04% 6.52%

Commodity Market Update

Currency 23-Jul Prev_Day

Change

USD/INR 68.70 68.85 -0.14

GBP/INR 90.28 89.67 0.61

EURO/INR 80.56 80.31 0.25

International News

JPY/INR 0.62 0.61 0.01

Commodity 23-Jul Wk Ago Mth. Ago

Year Ago

NYMEX Crude($/bl) 67.85 68.17 68.82 45.73

Brent Crude($/bl) 73.73 70.02 73.41 47.01

Gold( $/oz) 1224 1240 1268 1254

Gold(Rs./10 gm) 29948 30172 30484 28320

Source: Thomson Reuters Eikon

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

24 July 2018

The information herein is meant only for general reading purposes and contains all factual and statistical information pertaining to Industry and markets which have been obtained from independent

third party sources and which are deemed to be reliable. The information provided cannot be considered as guidelines, recommendations or as a professional guide for the readers. It may be noted

that since Reliance Nippon Life Asset Management Company Limited (RNLAM) (formerly Reliance Capital Asset Management Limited) has not independently verified the accuracy or authenticity of

such information or data, or for that matter the reasonableness of the assumptions upon which such data and information has been processed or arrive data; RNLAM does not in any manner assures

the accuracy or authenticity of such data and information. Some of the statements & assertions contained in these materials may reflect RNLAM’s views or opinions, which in turn may have been

formed on the basis of such data or information. The Sponsor(s), the Investment Manager, the Trustee or any of their respective directors, employees, affiliates or representatives do not assume any

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account of lost profits arising from the information contained in this material.

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Derivative Statistics- Nifty Options

Disclaimer:

Derivatives Market

Debt Watch

Currency Market

Commodity Prices

• Nifty July 2018 Futures were at 11,099.4, a premium of 14.65 points,

above the spot closing of 11,084.75. The turnover on NSE’s Futures and

Options segment went down to Rs. 6,85,818.85 crore on Jul 23 from Rs.

5,24,534.82 crore on Jul 20.

• The Put-Call ratio stood at 0.88 against previous session’s close of 0.79.

• The Nifty Put-Call ratio stood at 1.80 against the previous session’s

close of 1.71.

• Open interest on Nifty Futures stood at 28.58 million as against the

previous session’s close at 27.99 million.

• Bond yield rose as increase in crude oil prices triggered concerns of

higher inflation ahead as well monetary tightening.

• Yield on the 10-year benchmark paper (7.17% GS 2028) went up 2 bps

to close at 7.81% as against its previous close of 7.79%. During the

session, bond yields traded in the range of 7.77% and 7.82%.

• Banks’ borrowings under the repo window of the Liquidity Adjustment

Facility (LAF) stood at Rs. 22,359 crore (gross) on Jul 23, compared with

Rs. 16,381 crore (gross) borrowed on Jul 20. Sale of securities under the

Reserve Bank of India’s (RBI) reverse repo window stood at Rs. 11,456

crore on Jul 20.

• Banks borrowed Rs. 2,982 crore under the central bank’s Marginal

Standing Facility on Jul 20 compared with borrowing of Rs. 73 crore on

Jul 19.

• The rupee rose initially against the greenback due to gains in the

domestic equity market. However, all the gains were wiped out on

renewed trade war concerns between U.S. and China. The rise in crude

oil prices, too, had a negative impact on the Indian currency.

• The euro edged up against the greenback, benefitting from the U.S.

President recent criticism on the global monetary policy, resulting in

currency manipulation.

• Gold prices traded lower as greenback gained against the euro.

• Brent Crude prices traded higher due to supply concerns after tensions

intensified between Iran and the U.S. Also, 24-hour strike by offshore

workers on three oil and gas platforms in the British North Sea added to

the gains.

• A survey by IHS Markit and financial information provider Ipsos Mori

showed that British households' finance outlook turned positive for the

first time since Mar 2016. The seasonally adjusted Household Finance

Index, rose to 44.6 in Jul 2018 from 43.6 in Jun. Also, the index for

measuring the outlook for financial well-being over the next twelve

months grew to 51.3 in Jul from 48.2 in the previous month.

• According to media reports, the People's Bank of China injected record

liquidity into the banking system via medium-term lending facility to

alleviate funding pressure. China’s central bank offered CNY 502 billion

of MLF with a maturity of 1 year. This was the biggest injection via MLF

since it was introduced in 2014.

Markets for You

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